Skip to main content

Everton takeover triggers loan repayment

Everton’s prospective new owners 777 Partners will have to pay back £140 million provided by two lenders for the club’s new stadium should their deal to buy out Farhad Moshiri proceed.

MSP Sports Capital offered a £100 million loan after their own attempt to acquire some of Moshiri’s shares collapsed, while businessmen Andy Bell and George Downing also put down about £40 million towards the completion of the 52,888-capacity arena at Bramley-Moore Dock.

Under the terms of the deals, however, a change of ownership would mean that those loans have to be repaid and Miami-based 777 Partners are now set to request meetings with both parties in the hope of keeping them involved.

While sources suggest that 777 and Moshiri are confident of a positive outcome with the creditors, any hitch would increase the financial burden on the US firm, who would have to find fresh funding for the £550 million stadium, cover Everton’s running costs and also have money for strengthening the team. Everton have already been lent a sum in the region of tens of millions of pounds by 777, to help with short-term capital working requirements and the stadium build.

Another lender, Rights and Media Funding, are said to be on board with Moshiri’s proposed sale, having objected to a deal tabled by MSP last month.   Football finance guru Kieran Maguire comments: ‘Rights & Media Funding Ltd, the mysterious company with no employees, hardly any assets except a loan book and £300m of debts from Cyprus and the Bahamas.’

Labels:

Comments

Post a Comment

Popular posts from this blog

Fulham requires big funding from owner

After lengthy delays, Fulham’s shiny, new Riverside Stand has finally opened, creating “a unique Thameside destination with first class facilities for supporters and partners on match days, as well as for the wider community year-round”. This ambitious project has increased Craven Cottage’s capacity by around 4,000 to 29,600, while it has also taken advantage of the club’s fantastic location and wealthy catchment area by including two Michelin star restaurants, a rooftop swimming pool, corporate hospitality and event space, all benefiting from views of the Thames. Chief executive Alistair Mackintosh observed, “Fulham is the sort of club that can have a business class or first class and have fans that turn left on a plane.” Indeed, there is also an exclusive members club – with a football season ticket as an optional extra. It’s fair to say that “the times they are a-changing”, as this is a long way from the traditional pie and a pint. However, in a world where clubs face the tw...
Post a Comment
Read more

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...
1 comment
Read more

A poor financial record, but new hope at Everton

I recently saw an amusing video online in which a group of Everton fans were rebuked in jest for being hopeful.  Football fans in general tend to swing between excessive optimism and excessive pessimism, but for many it seems that moaning is in their bloodstream (Spurs fans probably take the trophy).  However, Everton fans have had plenty to moan about on and off the pitch.   Let’s hope that a new era is about to begin for this grand old club. Everton’s 2023/24 financial results covered a fairly momentous season, when they ended up 15th in the Premier League, though they would finished three places higher if they had not received an 8-point deduction for breaching the Premier League’s Profitability and Sustainability Regulations (PSR). It was a worrying time for Everton fans, as the club faced a “perfect storm” of issues, including large financial losses, an ever increasing debt burden, a challenging stadium build and the tortuous sale of the club. There were eve...
Post a Comment
Read more